Posted on 08/27/2015 5:52:47 PM PDT by SkyPilot
U.S. stocks rallied again Thursday, with the Dow Jones Industrial Average closing at 16,654.77, up 369.26 points, as the Chinese government admitted intervening in foreign currency markets to prop up the value of the yuan.
The communist government also admitted simultaneously intervening in the Chinese stock market to halt further declines.
The average investor got a second breather this week as the Dow gained back Wednesday and Thursday the 1,000 points lost in opening trading Monday in a roller-coaster market that shows no signs of stabilizing.
Market Watch reported the Treasury market, a comfortable haven for many nervous investors, recovered losses on Thursday in a late afternoon rally. Pprices of Treasuries rose and pushed yields, which move in the opposite direction, down to their opening levels.
Treasury yields had opened higher Thursday morning after a U.S. Commerce Department report said the U.S. economy grew at a faster pace in the second quarter than initially estimated.
China’s stock market ended Thursday higher, but investor enthusiasm was dampened with the realization China’s central bank has been intervening in the market just before the closing bell. The strategy is to buy large capitalization stocks in an effort to turn a market that might close down into a market that looks like it is stabilizing and ready to gain.
Amid one of the most volatile stock markets in U.S. history is concern that the economy could once again tank into the kind of recession experienced in 2008 as the Dow dropped thousands of points at the end of President George W. Bush’s second term in office.
As WND reported Wednesday, in the past two weeks, China has sold more than $100 billion in U.S. Treasuries, as much as it has sold in the entire first half of the year.
(Excerpt) Read more at wnd.com ...
Wonderful.
If China continues to engage in unprecedented dumping of U.S. Treasuries, the resulting upward pressure on U.S. interest rates may force the Federal Reserve to resume an unexpected fourth round of quantitative easing. The Fed would once again take up the policy of buying additional billions of U.S. Treasuries to depress interest rates in an effort to prop up the U.S. stock market.
I am sure this will all end just peachy.
Why do I get the feeling that the Luciferian elite are just waiting for right time before they pull the rug out and enslave us all?
China has long been accused by many Americans -- including Donald Trump, for example -- of deliberately devaluing their currency to maintain a competitive edge against its trading partners such as the U.S.
As I've been saying for years, the yuan has actually been overvalued all this time. And the Chinese government obviously knows this because they're now taking measures to prop up the yuan.
The yuan is a worthless currency, folks. Any company that trades on U.S. stock exchanges with assets in China should basically write down the value of those assets to zero. This, I suspect, is what the turmoil in the U.S. stock market has been all about over the last few days. Nobody knows how to value their Chinese assets accurately!
But, greed is a powerful motivator.
Oh no, they're going to *crush the US dollar* by creating a new reserve currency. /s
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